Carillon Presentation

Building DesignView from Michigan AvenueWABASH AND SUPERIORSKIDMORE, OWINGS & MERRILL LLP



THE CARILLON



THE CUSTOMER – WHO AM I?DEFINING THE BUYER Although there are some cities where Baby Boomers/Empty Nesters find it THE CARILLON cost prohibitive to relocate from the suburbs to the city, Chicago does not fall SUMMARY OF IMPORTANT POINTSFor this project, our buyer will mainly consist of two demographic types - the into this category. For the above reasons, The Carillon would be attractive toBaby Boomer/Empty Nester and the Generation X buyer (“Gen X”). The Baby the Baby Boomer/Empty Nester demographic and would be either a couple or n Target customer is the Baby Boomer/Empty Nester,Boomer includes ages 52-70 and the Empty Nester is 60+ years old, with some possibly a single individual. ages 52 – 70 and Generation X buyer, ages 35 – 50Baby Boomer overlap, and the Gen X buyer includes ages ranging from 35-50. The Gen X buyer is the second demographic likely to consider a purchase at n Location near shopping, nightlife, cultural attractions,The Baby Boomer/Empty Nester is the primary demographic likely to consider The Carillon. Although only the third largest population segment, numbering schools, activities for children are important to thisa purchase at The Carillon. Given that the population today works longer than approximately 60,000,000, or 25% of all adults behind Millennials and Baby demographicretirement age, this buyer is affluent, also with a six-figure income, likely selling Boomers, the Gen X population “has more spending power than any othera luxury suburban property or purchasing an “in town” or second property and generation, with 29% of estimated net worth dollars and 31% of total income n C ompetition might include Ritz Carlton Residences, 57-choose to keep their current suburban home. They might be purchasing a big dollars.” (Gen X: How to Market to the Forgotten Generation, American Express, 61 W. Erie, 9 West Walton, 4 E. Elm, 403 N. Wabashcity residence to enjoy occasionally and maintain a full time residence outside Small Business Open Forum, September 15, 2014). They are also more likelyof Illinois or outside of the United States. than other demographic groups to focus on key financial goals, one of which n Luxury finishes required, including Automated Smart is to purchase a home. They comprise 26% of recent homebuyers (National Home technologyContrary to popular belief, Baby Boomer/Empty Nesters are not necessarily Association of Realtors, 2016 Home Buyers and Sellers Generational Trendsdownsizing when their children leave home. Surprisingly, 49% of the Baby Report). n Amenity rich property desired by the demographicBoomer/Empty Nester population purchases a property with square footage group, including state-of-the-art fitness center, winethat is either equivalent to or greater than the family home from which they are The household income level for educated Gen X buyers is $250,000 or, they storage, pool/spa, club room, sundeck, dog runrelocating (“Checking in with retirees who have moved back downtown: How do have accumulated a personal net worth of $1M+ (Gen X: How to Market to thethey like it?” The Chicago Tribune, May 25, 2016). Forgotten Generation, American Express, Small Business Open Forum, September n Units should be no less than 872 square feet with a 15, 2014). For The Carillon, we assume that some buyers will also be dual mix of 1 -3 bedroom unitsAlso, “most downsizers coming from a larger two-story home are looking more income households, which could drive the total income level even higher thanfor a reconfiguration of space rather than a significant step down in square $250,000. n P rivate outdoor space is desirablefootage,” (builder.com, “Empty Nesters Flock To One-Level Designs, May 25, n P arking ratio of 1.5 spaces per unit is ideal2016). Given the proposed square footage for the three bedroom units (see page n F ull time door staff and on-site engineer required 6 below), The Carillon would be attractive to the Gen X buyer which might n P rice points ranging from $797,880 - $3,600,000 orBaby Boomer/Empty Nesters are also choosing to relocate to urban areas be considering family expansion, relevant when considering that, for highlyrather than stay in the suburbs. For example, Baby Boomer/Empty Nesters are educated women, the average age of motherhood doesn’t start until the 30’s $915 - $1,200 per square footseeking “the intellectual stimulation of being in an interesting neighborhood,” (PewResearch, FACTTANK, News in the Numbers, “For Most Highly Educated n M onthly assessments ranging from $900 - $3,000 perand would like to live near amenities and places of culture, such as museums. Women, Motherhood Doesn’t Start Until the 30’s, January 15, 2015), an ageThey are also looking for convenience and ease, such as “doormen and group that falls within the Gen X demographic. Further support for increased monthelevators so they don’t have to climb stairs, shovel snow and schlep packages. square footage required by this demographic noted by the National Association n M onthly payment could range from $1,500 - $15,000They want a place where they can “age in place,” as the phrase goes.” (“Eager of Realtors: “the size of homes for buyers 36 to 50 was typically larger homes n Presell begins 18 months out, absorption 13.2 monthsto Move to the City, but Stranded in the Suburbs,” The New York Times, February at 2,200 square feet…” (National Association of Realtors, Home Buyer and n T otal projected sellout from condo sales equals26, 2016). According to Realtor Mag, “Unlike previous generations, many baby Seller Generational Trends Report, 2016).boomers aren’t planning their retirement in sunny southern locales. Instead, $333,000,000more are choosing to move back to metro areas they had left when they started Further, the development’s location within one of Chicago’s premier publicraising a family in the suburbs.…baby boomers are the largest and wealthiest school districts is also a motivating factor for this demographic which is having 3generation to ever retire and they’re making their imprint and redefining urban children later than average. As such, children might be included in the residentcenters”. The article continues, “Developers are taking notice. ‘Larger and mix.more expensive city residences chock-full of active senior–friendly amenities,like round-the-clock concierge services, are going up across the country, and As stated above, this development is located in a premier Chicago Publicmore upscale, boomer-targeted shops and restaurants are opening their School district, The Ogden International School of Chicago (“Ogden”). The K-5thdoors to serve these newly minted urban dwellers,’ realtor.com®notes” (Baby graders attend a facility which is within walking distance from the site and whichBoomers Heading Back to the City, May 24, 2016, Realtor Mag). underwent a major renovation approximately five years ago. This school is a full Continuum IB World School, which offers an International BaccalaureateHaving amenities on site such as state-of-the-art fitness options, nearby Program focusing on critical thinking, research, consideration of both local andshopping and vibrant nightlife venues, and close proximity to museums and global contexts, and development of multilingual students. They also offer atheaters perfectly meets the needs of this demographic who is looking for easily fine arts and world languages curricula.attainable, walkable activities and an easily attainable, walkable lifestyle, ingeneral. Continued on next page

If, however, parents are not inclined to send their children to Ogden, there are • 57-61 W. Erie – Although no details are available at this time, this project, also other options in close proximity. These include Francis Xavier Warde, a located slightly outside the Cathedral District, is expected to be a 10-unit private Catholic school for grades Pre-school through 8 offering scholastic, development featuring 2,700 square foot units with list prices of $1M+. athletic and performing arts programs; The British School, a private school offering an International Primary curriculum, MIT science and technology • 9 W. Walton – Sixty-six unit, new construction tower, with expected delivery curriculum, Juilliard Performing Arts programs and a Music School, among in 2018, featuring 2+ bedroom units. Although the published information is other offerings; The Latin School, a private school for grades junior K - 12 only showing that approximately 1/3 of the units are under contract, it is our offering special academic projects for each grade, a state-of-the-art science understanding that approximately 90% of the units are under contract with an center, theater, art studios and usage of Chicago’s cultural resources in close average price per square foot of $1,200. For just the listings shown in the proximity; and Walter Payton College Prep, a U.S. top 10, selective enrollment, MLS, the price per square foot ranged from $1,004 to $1,300 but it is also public, magnet high school with a 98% college attendance rate, recipient of our understanding that some units are approaching $1,800 per square foot. numerous awards and a just completed $20M annex to increase attendance. Units range in size from 1,950 square feet to 7,000+ square feet. Amenities Further, according to the National Association of Realtors Home Buyer and include a house car, dry-cleaning, fitness center, lap pool, wine storage, Seller Generational Trends Report, 2016, “Convenience to a job (50%), quality meeting room, and dog run. of school districts (41%) and distance to schools (34%) were a few of the most important factors to buyers 36 to 50 years”. • 4 E. Elm – Thirty-five unit, new construction, full amenity building located in the Gold Coast. Published information indicates that nineteen units are Finally, as busy professionals and parents, this demographic is not only looking closed for an average price per square foot of $1,042. Sale prices ranged for relatively maintenance free living, but also easily accessible conveniences from $2,220,000 to $6,692,192 for unit square footage ranging between including, state-of-the-art fitness options and access to nearby attractions for 2,150 and 5,400 (raw space). To date, the least expensive sale was $717 children, such as the Museum of Contemporary Art, Oak Street Beach, Navy per square foot and the most expensive was $1,239 for the 5,400 square Pier, Kohl’s Children’s Museum, and Maggie Daley Park. foot raw space unit. Amenities include a landscaped sundeck, outdoor pool and spa, fitness center, and screening room, among other features. ALTERNATIVES • 403 N. Wabash – Forty-five unit, new construction high-rise, featuring 3+ The Carillon will be located in the section of River North known as the bedroom units ranging in square feet from 2,249 to 3,434 square feet with Cathedral District, bordered by Michigan Avenue, State Street, Chicago only three floor plans available, 3 units per floor. Of the units presently under Avenue and Ontario, and aptly named due to the abundance of cathedrals and contract, the average price per square foot is $807. For available listings former cathedral buildings located there. Presently, there is one other new published in the MLS, the average price per square foot is $779. Amenities construction luxury condo option available in the immediate vicinity, namely include fitness center and yoga room, screening room, game room, rooftop The Ritz Carlton Residences, but a second development located at 57-61 Erie terrace with outdoor kitchen. is also expected at some point. Including The Ritz Carlton Residences, other South Elevation examples of recent new construction projects in close proximity that this buyer might consider, if available, would include:4 • Ritz Carlton Residences / 118 E. Erie – Located in the Cathedral District, this is an eighty-nine unit, transitional-style new construction building, featuring 1+ bedroom units. Based on published info, units range in price from $900,000 - $10,000,000, and feature 1,423 – 6,597 square feet. All units also feature a private balcony or terrace(s). Thirty-two of the units have closed with an average price per square foot of $968 and average square footage of 2,322. The smallest unit features 1,423 square feet and the largest is a raw space penthouse unit featuring 6,597 square feet. The least expensive unit (one bedroom) at 1,423 square feet is offered for $900,000, or $632 per square foot, and the least expensive one bedroom unit to close to date is also 1,423 square feet with a closed price of $1,250,000 or $878 per square foot. The largest, and most expensive, unit at 6,537 square feet of raw space is offered for $10,000,000, or $1,530 per square foot, and the most expensive unit to close to date is the other penthouse unit at 6,028 square feet of raw space with a closed price of $8,632,000 or $1,432 per square foot. Amenities West Elevationinclude a billiard room, screening room, fitness center, spa relaxation and treatment room, beverage storage and grand salon.

BUILDING SPECIFICSTHE ESSENTIALS • Nest ThermostatOur buyer is seeking luxury in an unpretentious ambiance. In other words, a • Energy efficient HVAC and water heatermore casual lifestyle, i.e. no formal dining room required, but surrounded byhigh quality finishes. Examples of recommended finishes and features include, • Data/CAT 5 – RG6 readybut are not limited to, the following:• Transitional finishes • Distributed dual zone audio - 5.1 sound wiring in the living room, two speakers each in master bedroom, master bath, kitchen and outdoor space• 10’+ ceilings • TV wiring for living/family space and master bedroom• 8’ solid core doors • Wired capability for Sonos, Control 4 or Crestron systems• Larger family/living spaces • Automated window treatments (some associations require uniform window• Space for dining table treatments for street/public facing windows)• Cove moldings • Security, such as key fob entry and lobby and elevator cameras• Abundant lighting throughout • Separate elevator to access Penthouse level• Built-in cabinetry in living area • O ne garage parking space included for Penthouse units, all other units have option to purchase a spot and Penthouse units have option to purchase a• G ourmet kitchen featuring Wolf, Subzero and Bosch appliances, wine second spot refrigerator, choice of stainless, colored stainless, matte finishes or integrated appliances • Sound insulation (concrete) between floors• Painted inset cabinetry with full extension and slow close drawers • Sound insulation between units• Undermount cabinet lighting • Abundant storage both within and outside the unit• Quartz (waterfall) options for kitchen counters • Private balcony space• Pantry, if space allows • Common sundeck with garden-like landscaping, lounge chairs, and grills• Baths featuring marble or quartz counters and porcelain tile flooring • Smaller on-site fitness room• Radiant heated flooring in all baths • Bike room• Master baths to include - Large walk in showers with steam units, rain shower, • Common wine storage hand held shower heads, frameless glass doors and a separate freestanding tub Given the property location and target buyers, the building should be “amenity rich” offering features such as a club room, pool/spa, wine storage, fitness• Automated, Smart Home technology center, and dog exercise area. This property will likely have several owners who use their condos as “in-town” units and do not live there permanently or year A crafted definition for a uniform understanding of Smart Home follows: round. Since the property would be expertly managed and all residents would be familiar to management, the condo portion might also live more like a hotel A home that is equipped with network-connected products (i.e., “smart in some respects. As such, residency at The Carillon might be considered a city products,” connected via Wi-Fi, Bluetooth or similar protocols) for controlling, vacation and the amenities offered should have one feeling as if they are on automating and optimizing functions such as temperature, lighting, security, vacation. safety or entertainment, either remotely by a phone, tablet, computer or a separate system within the home itself. The home must have a smart security feature or a smart temperature feature in addition to a reliable internet connection. It then must include at least two features from a list of smart options, including appliances, entertainment, lighting, outdoor sensors, and safety detectors (“Just What is a ‘Smart Home’ anyway?” CNBC, May 10, 2016) Continued on next page 5

UNIT SIZE AND MIX Although the renderings do not provide for private outdoor space, but given that most buyers are seeking it, it is our recommendation that it be provided. The Given the location of this property and the comparable buildings in close outdoor space has not been included in the total square feet calculated above proximity, it is our opinion that one-bedroom units should be, at minimum, and would be configured as a balcony that is suspended off the building and 872 square feet. For example, square footage of recently sold or currently staggered. active units at other luxury buildings include The Fordham - 1,200 square feet; The Pinnacle – ranging from 1,004 – 1,210 square feet; 55 E. Erie – 1,050 PARKING square feet and The Ritz Carlton Residences – 1,423 square feet. Because we anticipate sales to individuals with multiple homes, we are including units that Each of the three penthouse units would be sold with one garage parking spot feature smaller square footage than are found in luxury buildings in the area. included in the price and the option to purchase a second spot. The other units would be offered for sale with one garage spot at an approximate cost of As such, we have suggested an initial plan of up to 198 units, and livable $65,000 each. Since the building will have a hotel, there will be valet parking square feet of approximately 329,004 with our suggested distribution of units for hotel and other guests of the building residents but a second space would as follows: be available for purchase to those who might prefer to house a collector type car or have a dedicated space for a nanny, for example. In this scenario, the • T hree Penthouse units – approximately 3,000 square feet each, featuring 3 or appropriate parking ratio would be no less than 1.5 spaces per unit. 4 bedrooms, three en-suite baths and an additional ½ bath, family room, and private outdoor terrace of approximately 300 square feet. STAFFING • Forty-two 3 Bedroom units – approximately 2,300 square feet each, featuring For a building of this size and type, there would be full time door staff (7 days 3 bedrooms and 3.5 baths and 100 square feet of private outdoor space per week, 24 hours per day) and an on-site engineer available Mon-Fri from 9 a.m. to 5 p.m. • T hirty-eight 2 bedroom + den units – approximately 1,950 square feet each, featuring 2 bedrooms, den, 2 en-suite baths, an additional ½ bath and 75 OTHER CONSIDERATION square feet of private outdoor space It is our understanding that this property is also expected to include hotel and • Forty-three 2 Bedroom units – approximately 1,700 square feet each, hotel timeshare units. For the timeshare units, one consideration might be to featuring 2 bedrooms, both with en-suite baths, an additional ½ bath and 75 hold a few units back and lease them to corporate housing companies. Given square feet of private outdoor space the location and amenities planned, this would be the ideal type of property that a corporate housing company would like available in its inventory of offerings • Twenty-two 2 bed units – approximately 1,200 square feet each, featuring and would provide a stream of income to the developer/owners once the project 2 bedrooms, 2 baths, an additional ½ bath and 75 square feet of private is complete. outdoor space • Thirty-three 1 bedroom units – approximately 1,050 square feet, featuring 1 bedroom, 1 en-suite bath an additional bath and 75 square feet of private outdoor space • S eventeen one bedroom units - approximately 872 square feet, featuring 1 bedroom, 1 en-suite bath, an additional ½ bath and 75 square feet of private outdoor space The following chart summarizes unit mix and square feet per unit. UNIT MIX SUMMARY Assume 198 units for a total square footage of 329,004 NUMBER OF UNITS 3-4 Bed PH 3 Bed 2 Bed + Den 2 Bed 2 Bed 1 Bed 1 Bed 3 42 38 43 22 33 17 SQ FT/UNIT 3,000 2,300 1,950 1,700 1,200 1,060 872 TOTAL SQ FT 9,000 96,600 74,100 73,100 26,400 34,980 14,8246

ECONOMICSPRICE POINTS HOAUnits for this project would range from $797,880 – $3,600,000 with a price per Homeowners’ assessments would include:square foot of between $915 – $1,200. The table below outlines the pricing • Waterand price per square foot by unit type and square footage. It is important to • Common Insurancekeep in mind that these suggested sale prices are based on today’s comparable • Exterior Maintenancesales. Assuming that these units are not expected to deliver until 2018, • Lawn Caremarketing of these units would not commence until no more than 18 months • Scavengerprior. These prices would be reevaluated and adjusted up, or down, accordingly, • Snow Removaldependent upon market conditions at that time. • Cable/Internet • Doorman, 7days, 24 hours per dayUNIT PRICE PER SQUARE FOOT SUMMARY • F itness center, smaller scale than offered to entire resident populationNUMBER OF UNITS 3-4 Bed PH 3 Bed 2 Bed + Den 2 Bed at the complexSQ FT/UNIT 3 42 38 43 • Onsite MaintenanceTOTAL SQ FT 3,000 2,300 1,950 1,700 Because this building would feature elevator service, and possibly a separatePRICE/SQ FT 9,000 96,600 74,100 73,100 elevator for the penthouse units, as well as, staff, assessments would be reflective of the additional maintenance costs required for these conveniences.UNIT VALUE $1,200 $1,125 $978 $960 For example, assuming salaries for doorperson (three eight-hour shifts) and maintenance of $150,000 and $65,000, respectively, per year, allocated over $3,600,000 $2,587,500 $1,907,100 $1,632,000 approximately 50 units, would add an average of approximately $350 per month to assessment total.NUMBER OF UNITS 2 Bed 1 Bed 1 BedSQ FT/UNIT 22 33 17 Given the above, monthly assessments would likely range from $900 - $3,000TOTAL SQ FT per month. 1,200 1,060 872PRICE/SQ FT 26,400 34,980 14,824 Further, with deeded garage parking, there would be an additional assessment, typically ranging an additional $85 - $100 per month per space.UNIT VALUE $952 $925 $915 COST OF OWNERSHIP $1,142,400 $980,500 $797,880 The Baby Boomer/Empty Nester buyer would likely make a cash purchase, orUnderstanding that the above data is based on information available to date, finance 30% or less. According to the National Association of Realtors Homethere is no way to predict the fickle nature of the residential housing market and Buyer and Seller Generational Trends Report 2016, only 68% of buyers aged 61-whether these sale prices would be achievable at the time these units go to 69 financed their home. In contrast, because the majority of the Gen X buyersmarket. Our recommendations simply demonstrate that these sale prices and would be move-up buyers, i.e. buyers who sell their existing home for a largerprices per square foot have been achieved in the past in River North. Further, it or more expensive one, they would likely finance 80% of the purchase price, orshould be noted that, although there has been recent press indicating the luxury less.market has stalled (Chicago Tribune, “Upscale Sales Down”, May 13, 2016), thishas not necessarily been the case in the luxury condo market in River North In the past, real estate taxes were typically estimated to be 1.5% to 2% of the(the luxury market is defined as any property with a sale price of $1 Million or purchase price of new construction properties. Because real estate taxesgreater). Comparing market times of luxury condos that have a closed date are expected to increase in Cook County, we have estimated real estate taxesof January 1, 2015 – May 21, 2015 to the same period in 2016, the average based on comparable properties. In fact, the tax increase is expected to bemarket time in 2016 was 116 days compared to 118 days in 2015. “the largest property tax hike in modern Chicago history,” (Chicago Tribune, December 31, 2015). Also, according to a recent article in The Chicago SunBoth the targeted Baby Boomer/Empty Nester demographic and the Gen X Times, “…the tax increase will be phased in over the next four years, startingdemographic would likely be selling a residence before purchasing at The with a 7.1 percent increase this year, followed by a 2.5 percent hike in 2017,Carillon. If the buyers were selling today, the Baby Boomer/Empty Nester 1.2 percent in 2018 and 1.4 percent in 2019,” (“The WATCHDOGS: Rahm’s taxwould likely be selling in the luxury market at $1 Million plus but might hike will slam 42nd Ward but spare most wards”, Chicago Sun Times, January 2,encounter a longer market time with the sale of their property depending on 2016). Given that properties might simultaneously be reassessed, the truethe community from which they are relocating, but their equity would also likely impact on real estate property taxes for higher price point and luxury propertiesbe much greater - if not 100% - so they would be able to price realistically is unknown and our estimates could be understated.to achieve a sale. The Gen X demographic would likely be selling a propertypriced in the $500,000 - $900,000 price point, which is the most popular and Continued on next pagefastest moving price point in the River North/Gold Coast condo market. 7

If any buyer were to finance the purchase, and at today’s – September 29, because the MLS does not provide year-end or month end inventory data for 2016 - interest rate of 3.5% for a 30 year fixed, jumbo loan, principal, interest, years in the past, it is not possible to calculate absorption on a yearly basis taxes and assessments would amount to between $1,525 – $8,291 for the and compare to present time. Baby Boomer/Empty Nester and between $9,693 and $15,566 for the Gen X buyer, based on the assumptions depicted in the table below. Note that this Using “contract date” for condo and townhome transactions in River North, and payment does not account for homeowners’ insurance or any tax exemptions. priced between $790,000 – $3,600,000, we calculated the average number Also, it is obviously impossible to predict the trajectory of interest rates two and of transactions per month for 2013, 2014, and 2015 and through September half years into the future. For example, although we have been expecting the 2016. As the real estate market and activity have improved, in general, the Federal Reserve to raise interest rates, rates actually hit a three-year low after number of transactions per month has increased from 31.8 to 37.4 causing the May 2016 jobs report was issued, and although there is no sign of them absorption to decrease. Using the available inventory at October 11, 2016, the rising anytime soon, the upcoming Presidential election may have an impact. monthly absorption decreases year over year from 9.5 months to 8.1 months from 2013 to 2016, respectively. Based on the average number of transactions CARILLON CALCULATION OF MONTHLY PAYMENT EXAMPLES per month to date in 2016 and the available inventory, it would take approximately 8.1 months to sell out this property with the assumption that no Baby Boomer/Empty Nester Generation X comparable project would come onto the market. It should be noted that since all new construction units for projects in the pre-sale phase are not necessarily PURCHASE PRICE $797,880 $3,600,000 $1,907,100 $3,600,000 listed on the MLS, then absorption rates could be higher. If one were to assume DOWN PAYMENT* $797,880 $2,700,000 $381,420 $1,080,000 that this project would come onto the market and the existing level of inventory AMOUNT FINANCED $2,520,000 remained, then the absorption would increase to approximately 13.2 months. 0 $900,000 $1,525,680 As such, depicting a total sell out when marketing 18 months prior to delivery is conservative. It should also be noted that, today, there are historically low levels PRINCIPAL & INTEREST @ 0 $4,041 $6,850 $11,316 of inventory. According to Lawrence Yun, Chief Economist National Association 3.5% INTEREST** $900 $3,000 $2,010 $3,000 of Realtors, The chief constraint continues to be inventory levels, which remain $625 $1,250 $1,250 historically low (If You Build It, They Will Come, Realtor Mag, May/June 2016). As ASSESSMENTS $1,525 $8,291 $833 such, if inventory levels increased to normal levels, then monthly absorption $9,693 $15,566 would increase. TAXES*** TOTAL MONTHLY PAYMENT**** *Down payment percentages of 100%, 75%, 20%, and 30%, respectively ABSORPTION SCHEDULE AS OF SEPTEMBER 29, 2016 **Based on 30 year amortization at 3.5% interest at June 5, 2016 for a jumbo (in excess of $417,000) loan ***Based on range of taxes for properties in this price point and does not include any available exemptions ****Assume monthly payment is approximately 25% of gross monthly income PRESALE Sales per Month In general, a lender will likely have a 30-35% unit presale requirement for a JAN 2013 2014 2015 2016 project of this type and size. As stated in The Real Deal New York Real Estate FEB News, “Developers with top reputations and enormous financial strength MAR 24 22 20 19 will continue to find lending windows open for projects that are underwritten APR 28 28 44 41 appropriately for the realities of current supply-demand metrics.” (The Real Deal MAY 39 42 46 35 New York Real Estate News, “Lenders losing interest in financing high-end condo JUN 50 41 46 43 projects,” February 04, 2016, Konrad Putzier). JUL 25 47 50 61 AUG 40 37 31 51 Lending for luxury developments has tightened in some areas of the country, SEPT 44 38 40 29 but, based on the extremely quick sellout of recent, and previously discussed, OCT 30 30 34 30 Chicago projects at 9 W. Walton and 4 E. Elm (with average market times of NOV 28 31 31 28 51 days for 23 units under contract and 16 days for 21 units under contract DEC 27 45 33 or closed, respectively), securing capital should not be a problem. Of course, 20 29 34 there is always the risk that, by the time preselling begins, circumstances of the 27 21 28 market could be different than it is today resulting in longer market times. AVERAGE # OF SALES PER MONTH 31.8 34.3 36.4 37.4 ABSORPTION SCHEDULE AVAIL HOMES ON SEPT. 29, 2016* 302 302 302 302 Typically, absorption is calculated for the past three to five years in order MONTHS TO ABSORB CURRENT INVENTORY 9.5 8.8 8.3 8.1 to identify any patterns. For this period of time, however, it is important to remember that, five years ago, the residential market was still emerging from ADDITIONS - THE CARILLON 193 193 193 193 the real estate crash so normal patterns might not be readily apparent. Also, TOTAL 495 495 495 495 MONTHS TO ABSORB CURRENT + ADDITIONS** 15.5 14.5 13.6 13.2 *Homes priced between $790,000 - $3,600,000 **Does not account for new construction units not listed on the MLS for projects in pre-sale phase8

ABSORPTION OF UNITS BY MONTH FROM PRESALE DATE For a project of this type and size, we should expect 30%, or 59.4, of the units to sell within the first three months of marketing. Those who want their choiceMONTHS TO DELIVERY NUMBER OF SALES of unit and choice of location within the building are typically the buyers who are the “early adopters” and are comfortable making a purchase without being able18 19.3 to see the final product. During months four and five, an additional 2 properties17 19.3 might sell and then we would typically hit a plateau and sales over the next16 19.3 twelve months would be steady, but not necessarily consistent every month.15 2 For example, the chart below depicts an equal number of sales per month at14 2 thirteen months from delivery to the second month from delivery, but this would13 9.75 likely ebb and flow based on season, general market activity, and interest rates,12 9.75 among other factors. Finally, at one month from delivery, when buyers are able11 9.75 to walk the property and visualize what they are buying, the remaining units10 9.75 would sell.9 9.758 9.757 9.756 9.755 9.754 9.753 9.752 9.751 13.1REMAINING 1TOTAL UNITS 198ESTIMATED PROJECT INCOMEWhen applying the price per square foot to the number of units suggested thetotal projected sellout for this development is rounded to $333,000,000.CALCULATION OF TOTAL SELLOUT 3-4 Bed PH 3 Bed 2 Bed + Den 2 Bed 2 Bed 1 Bed 1 Bed TOTALS 3 42 38 43 22 33 17 198NUMBER OF UNITSSQ FT/UNIT 3,000 2,300 1,950 1,700 1,200 1,060 872 329,004TOTAL SQ FT 9,000 96,600 74,100 73,100 26,400 34,980 14,824PRICE/SQ FT $333,174,060UNIT VALUE $1,200 $1,125 $978 $960 $952 $925 $915TOTAL VALUE $3,600.000 $2,587,500 $1,907,100 $1,632,000 $1,142,400 $980,500 $797,880 $10,800,000 $108,675,000 $72,469,800 $70,176,000 $25,132,800 $32,356,500 $13,563,960 9

THE PROCESS THE TEAM COORDINATION AND INVOLVEMENT WITH DEVELOPER AND PROJECT TEAM The CONLON/Christie’s team, with almost seventy-five years of combined experience in the real estate industry, and who will be at the helm, will From its inception, and from the top down, CONLON/Christie’s has adopted a include Sean Conlon, Rich Kasper, Benjamin Burford, Melissa Archer-Wirtz and collaborative culture among its agents. This collaboration is a major contributor Stephanie Poulakidas. Each individual is profiled in the following “About Us” to its success, and – in turn - encourages everyone to think creatively and share section. ideas to best service our clients. In addition, for this project, we will have a dedicated sales center staff of three Our involvement in new construction projects has taken shape in many forms to five sales people, depending on the point in the sales cycle. For example, and varies by project, depending on project size and requirements of the when the project comes onto the market and we will be receiving numerous developer. For a project of this size and scope, CONLON/Christie’s will initially inquiries, we will have sales center staff available seven days during dedicated coordinate with team members in order to facilitate an efficient and timely hours each day. As sales plateau, we will staff the sales center all day on the delivery of your project’s elements. We arrange introductions of key team weekends and “by appointment” during the remainder of the week. Once we members, organize team meetings, define deliverables, and provide advice to are able to walk the property, there would be at least two people available in unify the project. We also ensure each team member understands his/her role, the sales center so that one could accompany on-site viewings, while the other the roles of others, and the project’s timelines. would remain available to answer questions of other buyers. Toward the end of the sales cycle, we will likely revert to seven-day sales center hours as inquiries Next, in order to crystallize your project’s strategy, we define the marketing and typically increase when the units are completed and buyers are able, in person, sales strategy, the phasing and pricing strategy, competitive positioning and to view both the units and amenities before making a purchase decision. implications for competitive marketing, and target purchaser groups. We define your product and coordinate any offsite components, such as the sales center. DISTINGUISHING CHARACTERISTICS OF CONLON/CHRISTIE’S Additionally, we define the appropriate Christie’s programs available to enhance your project. CONLON/Christie’s is uniquely positioned as your broker of choice based on its extensive experience serving as brokers for new construction projects and our Simultaneously with the above, we work closely with the architectural and unrivaled role as advisors to the architectural and development professionals development teams offering input on floor plans and schematic designs for on the project team. CONLON/Christie’s is not just your real estate brokerage. the interior of your project and agree upon locations for vertical services to We are also your real estate advisor. By the time a project comes to market, best optimize layouts and circulation.  We test furniture layouts with designers we already have hundreds, if not thousands, of advisory hours invested in larger to ensure unit designs are functional and classic, ensure connections projects. And, since we often also source and advise on the land purchase first, among design elements, consult on materials and specifications of design we are typically already involved before the project is conceived. development, and organize design development presentations to move towards selection of materials and final design. In addition to our unmatched advisory services, the marketing services and international breadth we offer as a Christie’s International Real Estate Once we move into the marketing phase, CONLON/Christie’s works with you to affiliate will bring the project to the attention of a highly qualified international find and manage a branding agency and PR firm, if necessary, or to advise on audience of potential buyers. Our services may additionally include any previously created vision and branding work. Once your brand team is in promotion in Christie’s International Real Estate magazine, digital marketing place, we assist in the development of a coherent brand story and approach. on christiesrealestate.com and christies.com, targeted print and digital Where applicable, we leverage Christie’s services into the offering. advertisements, high-profile events, lead generation through the Christie’s Affiliate network, mailings to targeted Christie’s clients, and more. We often For marketing and sales planning, we define the project phases and create work with our Christie’s International Affiliates, leaders in their respective luxury a timeline for your marketing and sales activities. We define the marketing markets, to deliver some of these services. and release approach, sales strategy and sales process, and local and global marketing approaches. We also prepare a marketing budget, identify and During the marketing and sales phases, and following completion, CONLON/ work with the public relations firm, and make off or onsite CONLON/Christie’s Christie’s provides a cultural connection to your project. We work with your activities and events available to promote sales globally. At this time, we also team to determine how best to use Christie’s events and facilities to most develop the unit pricing model. appropriately brand or provide cultural services for your project. Private events, art showings, collection curation, lectures, and wine tasting dinners are some For your marketing collateral, we engage with providers for your deliverables examples of programs that we use to assist in recognizing notable projects. such as, sales center design and construction, brochures, videos, websites, social media campaigns, exhibitions, and staging. We assist in identifying 25 and interviewing guest designers. We also review sales contracts prepared by counsel. In summary, we adopt an extremely hands on approach and are involved in every aspect of the project.10

PROJECT EXAMPLES G.O. Launch – Consumer Focus • RedEye ½ Page Print2930 N. AND 3033 N. SHERIDAN • C hicago Tribune Web Banner City North Zone • SunTimes Media Group/Today’s HomesA failed condominium conversion project, Conlon & Co. joint ventured with a • S unTimes Geo-targeted Web BannerConnecticut investment group to rehab the remaining units. CONLON/Christie’s • W indy City Times Front Page Print Bannerwas tasked with taking control of the marketing and sales of the remaining 130 • E -Mail Flyers for Sales Team to Client Listsof 395 total units which, to date, are completely sold. To facilitate the sale of • C onlonRealEstate.com Home Page Featured the Property w/ Info Bannerthe remaining units, and armed with a $300,000 marketing budget, we createda marketing strategy which included: CURRENT PROJECT Branding Since March 2015, CONLON/Christie’s has been the broker/advisor for a • Logo & Overall Brand Style new construction, 60-unit project (2 buildings). With the first architect, on the Online project for nine months, we met with the architectural team once a month to • 2930 Sheridan and 3033 Sheridan Websites offer our design opinions and the types of features and amenities that would be • Online Distribution: Listings syndicated to top real estate search portals necessary to be attractive to buyers when offered for sale. including ConlonRealEstate.com, REALTOR.com, Trulia, ChicagoTribune. The architectural talent changed hands in February 2016 and, since then, com, Zillow, etc. CONLON/Christie’s has participated in additional meetings offering insight • V irtual Tours by reviewing renderings and floor plans, etc. Included here is a rudimentary • F acebook Page – Created by Design Team and Managed by Sales Team example of our notations on a typical floor plan. This example is the third • M iscellaneous Online Advertising iteration of the floor plans, after incorporation of our input, so appears relatively Signage & Displays clean, in comparison to when we began this process. Once plans are finalized, • Posted V-Sign (2, 4’x8’ wooden signs in V shape) and the project comes to market, CONLON/Christie’s imprint will be apparent. • Vinyl Banner • Sales Center Displays (Features/Amenities, Area/Neighborhood, Floor To date, we have hundreds of hours of time invested in this project. The lesson Plans, etc.) learned from this project, so far, is to be involved as soon as possible in order • Custom Open House Signs to eliminate costly floor plan, and other, changes once ground has been broken. Collateral Material • 12 page saddle-stitch brochures and 2-page flyers With ground breaking anticipated in the first quarter 2017, and delivery • Branded business cards, stationery, deal folders, etc. expected in mid 2018, the sales center for this project will open in January • Branded developer contract 2017. • Branded closing gifts • Grand Opening take-away MARKETING BUDGET Advertising • B randed Design to Apply to All Advertising For a project of this scope, a total marketing budget would be no less than 1.5% • CTA Bus Interiors of the total sell out dollar volume generally proportionally funded by both the G.O. Launch – Broker Focus developer and CONLON/Christie’s. • C hicago Agent eBlast • C hicago Agent e-News Banner One component that requires special mention for consideration in the • Chicago Agent ½ page B&W print ad developer’s budget is the sales center. Because it is extremely difficult for • E-mail Flyers for Sales Team to Brokers the majority of consumers to visualize space and volume on a sheet of paper, • Broker Follow Up E-mail & Survey it is our experience that sales are stronger early when potential buyers can • C hicagoRealEstateDaily.com Ad touch and see and feel the space and finishes. A staged, full-scale model - including, at minimum, kitchen, bathroom and living space - draws in buyers and allows them to visualize themselves in the space. Also, since the suggested 11 finishes here are at a higher level than most new construction, and prices will be reflective of that quality, it is equally important that buyers can see and Continued on next page

THE UNITS AT 3033 recognize there will not be a need to upgrade these finishes or be required to Special Events spend even more to achieve luxury. In conjunction with a staged model, the • Presale Events NEARBY 3033 LIVING developer should also consider having a design professional available to assist • Grand Opening with finish selections. • Broker Events BUILDING FEATURES KITCHEN FEATURES • Public Open Houses CONLON/Christie’s, in turn, would allocate its marketing dollars in a Signage & Displays Belmont • Newly Landscaped Front Entry • Custom Merrilat cabinets strategically planned approach that would leverage the Christie’s programs and • Sales Center Signage & Displays Harbor could include the following: • Project Open House Signage 29 • Roof Top Deck with New Patio Furniture • Chrome hardware • Site Signage 443033 Advertising (Print & Web) PR & Social Media MODERN URBAN LIVING 41 38 34 • Freshly Painted Hallways and New • Glacier Bay chrome pull down faucet • Media Scheduling • Craft and Distribute Press Releases IN ONE OF CHICAGO’S BEST LOCATIONS Belmont Avenue Crown Molding • Under cabinet lighting • Media Buying • Create & Manage Online Profiles, such as Facebook, 20 • Stainless steel double bowl sink • Advertising Creative & Placement 35164 Lake • Garage, Carport, and Outdoor • 1 ¼\" granite countertops Online Twitter, Instagram, etc. Michigan Parking Options • Tile/Glass backsplash • Project Website, which may or may not include integrated video 18 • GE stainless steel appliances • 3D Animation/Walk-Throughs 45% ADVERTISING (PRINT & WEB) 24 • Secured Building Entry • Hardwood floors • Ongoing Website Maintenance 15% ONLINE Broadway • Online Distribution of Listings 13% DIRECT MARKETING Sheffield Avenue Clark Street 2 Sheridan Road • Storage Cages • Virtual Tours 12% BROCHURES & COLLATERAL Halsted Street 5 14 Direct Marketing 8% SPECIAL EVENTS 21 17 • Laundry Room • Direct Mail Campaigns 4% SIGNAGE & DISPLAYS 13 42 • Direct E-Mail Campaigns 3% PR & SOCIAL MEDIA • Bike Storage Brochures & Collateral 28 • Brochures As the project evolves, we continually evaluate the cost/benefit of each type 36 • Flyers of marketing program and adjust the strategy, if necessary, to reach as many • Floor Plans targeted consumers as possible. FLOORPLANS AT 30333 25190319124326 7 116 • Night Doorman BATH FEATURES • Event Take-Away 8 37 El Diversey Avenue 12 Lake Shore Drive Diversey UNIT FEATURES • Custom Merillat cabinet Harbor • Chrome pulls • Choice of Oak Hardwood • Chrome towel bar & toilet paper holder 44 2215 Lakeview Avenue 30 • ¾\" granite countertops • Pre-wired for telephone and cable TV in Wrightwood Avenue 27 45 19 multiple locations North TIER 06 Pond • Individual smoke and carbon • Under mount single-bowl sink 31 32 monoxide detectors • Frameless Silver Beville mirrored medicine • 2 paneled white interior doors cabinet (per plan) SHOPPING & CONVENIENCE NIGHTLIFE & RESTAURANTS NIGHTLIFE & RESTAURANTS 312.733.7••20C2c1lhporsao|enmte3del0eo3Ddo3orSwsohhreiHtreidaabrdni-@wfoCaldoren&losnlRideinaglEstate.com | www.3•03P3oSrcheerlaidinanw.caolml and floor tile • Kohler Mistos plumbing fixtures El. El Station 14. Mista Pizza 32. L20 1. Market Place Foodstore 15. Dunlay’s on Clark 33. Melrose Restaurant • White Steel Enamel Tub 2. Pastoral Artisan Cheese, 16. Forno Diablo 34. Brazilian Bowl 17. The Avenue Tavern 35. Wilde • White baseboard trim • Walk in Shower (per plan) Bread, and Wine 18. Monsignor Murphys 3. Trader Joe’s 19. Frances’ Deli 3FI6T.NBEaSllSy &ToStaCl HFiOtnOesLsS • Generous closet space throughout unit TIER 11 4. Starbucks 20. Brendan’s Pub 37. Lincoln Park Athletic Club 5. Hiro’s Cafe 21. Jake’s Pub 38. Lakeview Athletic Club • Wire closet shelving BEDROOM FEATURES 6. Casbah Cafe 22. The Wiener Circle 39. Bikram Yoga Chicago • In Unit Laundry Hookups • GE Window Air Conditioner 7. KC Chocolatier 23. Panera Bread 40. LA Boxing • Benjamin Moore Paint • Hampton Bay ceiling fan with light 8. Screenz 24. Chilam Balam 41. FFC Halsted Street • Steel balconies (per plan) • Aladdin Collection Carpeting 9. Jamba Juice 25. The Counter 42. Diversey Driving Range 10. Akira 26. Potbelly 43. Nettlehorst Elementary LIVING ROOM FEATURES 11. Walgreen’s 27. The Burwood Tap 44. Alcott Elementary • GE Window Air Conditioner 12. Best Buy 28. Le Creperie 45. St. Clement Elementary • Hampton Bay ceiling fan with light 13. Go Grocer 29. Paciugo Gelato • Hardwood floors 30. North Pond 31. Mon Ami Gabi 312.733.7201 | [email protected] | www.3033Sheridan.com TIER 05 TIER 04 06 TIER 03 11 TIER 02 05 04 03 02 01 TIER 01 312.733.7201 | [email protected] | www.3033Sheridan.com WWW.3033SHERIDAN.COM MODERN URBAN LIVING IN ONE OF CHICAGO’S CONTACT OUR SALES TEAM AT 312.733.7201 [email protected] BEST LOCATIONS WWW.3033SHERIDAN.COM 1 BEDROOMS FROM THE LOW $200,000’s 2 BEDROOMS FROM THE LOW $300,000’s ————————— Smart Floorplans Pre-Wired Technology Garage Parking Options Still Time to Customize VA & FHA Approved ————————— Learn more at WWW.3033SHERIDAN.COM or contact us at 312.733.7201 [email protected] Another Conlon & Co Merchant Bank Structured Real Estate Project12

MARKETING WHERE BUYERS AREHOME BUYING TRENDS an affluent audience is further enhanced by prominent real estate promotions CONLONREALESTATE.COM on christies.com, which shows a selection of our properties and brings auction CUSTOM DEVELOPMENT WEBSITEThrough the CONLON & CIRE network’s surveys and studies of major global house clients to view our listings through a single click. MAGAZINE ADVERTISINGcities, we are able to chart trends and understand how luxury sales areinfluenced by both local and non-local buyers. Other data reports, like the Displaying the world’s finest properties in excess of $1 million, the site has“Home Buyer and Seller Generational Trends Report 2016” issued by the active listings in 19 languages and more than 40 countries. Using compellingNational Association of REALTORS®, gives us insight as to the marketing venues web advertisements, the site currently showcases several hundred propertieswhere people found the home they purchased. Based on the most recent valued at more than $10 million and attracts thousands of qualified visitors todata, CONLON/Christie’s directly corresponds its marketing focus by investing the website each month.nearly 75% of its marketing dollars on internet marketing ensuring the broadestmarket exposure for your development. Furthermore, by spending the remaining Christie’s International Real Estate is actively involved in social media. One25% on traditional marketing, we cover all the bases where buyers are looking. can discover exclusive property photo tours, auction house spotlights, events, videos, and news from the international Affiliate network on social media WHERE BUYERS FOUND THE HOME THEY PURCHASED platforms such as Facebook, Twitter, Google+, Vimeo, YouTube, and more. 44% ON WEBSITE & INTERNET ADVERTISING ONLINE DISTRIBUTION 33% THROUGH THEIR AGENT It is no surprise that the internet is the #1 resource where buyers are looking for their homes. Recent data shows that eight in ten buyers searched online 9% FROM A YARD OR OPEN HOUSE SIGN when looking for a home. For 41% of those homebuyers, searching the internet was their initial step in the home searching process. For these reasons, 6% THROUGH FRIENDS & RELATIVES CONLON/Christie’s has invested its largest portion of marketing dollars into making your listings available where potential buyers are looking — ONLINE. 7% FROM A HOME BUILDER OR SELLER By listing your project with the area’s multiple listing service (MLS), we are able 1% IN A NEWSPAPER to share extensive information with other brokers and online portals. Combined with our partnership of the nation’s leading online real estate marketing LESS THAN 1% FROM OTHER SOURCES network, we have the potential to syndicate listings and reach homebuyers on hundreds of websites. Source: National Association of REALTORS®, Home Buyer and Seller Generational Trends Report 2016 Included websites where your listing will be found are the three largest realCONLONREALESTATE.COM estate search engines: Trulia.com, Zillow.com, Homes.com and Realtor.com. Second to the MLS, these three powerful real estate portals make up theLuxury properties priced in excess of $1 million receive special placement in our majority of online home searches. For this reason, CONLON invests additionalfeatured Luxury Listings section on ConlonRealEstate.com. Utilizing high-quality marketing money to enhance and upgrade our listings on these sites.photography, this project will prominently be displayed on CONLON/Christie’swebsite with a comprehensive details page including key property information,an interactive amenities map, and links to Virtual Home Tours, street views,neighborhoods, social media, and detailed listing agent information.Additionally, with our closely managed internet distribution, SEO and Googleadwords strategies, CONLON/Christie’s continues to ensure that your projectis effectively marketed online. From our website, listings are syndicated tohundreds of other websites including the Christie’s International Real Estatewebsite which receives nearly 57 million website visits annually—includingmany high net worth clients from the Christie’s auction house website.CHRISTIESREALESTATE.COMListings in excess of $1 million will be on christiesrealestate.com. The websiteattracts more than one million unique visitors worldwide every year and, asthe preferred portal for buyers and sellers across the globe, consistently ranksamong the top results for luxury real estate on major search engines. Access to 13



ABOUT US

PROJECT TEAM SEAN J. CONLON RICH KASPER BENJAMIN W. BURFORD FOUNDER, OWNER CO-FOUNDER, OWNER CO-FOUNDER, CEO Through determination and an innate disposition for hard Rich Kasper is a co-founder and owner of CONLON: A Real Benjamin Burford is C.E.O. of Conlon & Co, C.E.O. of work, Sean J. Conlon, proprietor of Chicago’s premiere Estate Company. Prior to co-founding CONLON, Rich was CONLON: A Real Estate Company and a Director of Conlon boutique real estate brokerage, is the embodiment of what the first of only five agents to open the doors of his former & Co | Europe. In these roles, he is responsible for it means to succeed in America. real estate company, Sussex & Reilly with Sean Conlon strategy, new business development and day-to-day global and played an instrumental role in growing this company operations. An Irish immigrant hailing from the small village of to over $1 billion per year in annual sales. Rich pursued Rathangan in County Kildare, Sean came to the states his career in real estate after he spent 11 years as a Before joining Conlon & Co, Mr. Burford spent a successful in 1990 with an education from the Dublin Institute of commodity trader starting at the Chicago Board of Trade, five years as a consultant with the Chicago office of Technology’s College of Marketing and Design, a two-year stint at Lehman then developing and running the central order trading desk for Chicago Corp McKinsey & Company. As a consultant, his work included developing global Brothers in London and an insatiable appetite for business. And though his working at the World Trade center, and thereafter becoming an International growth, new business development and marketing strategies for top clients beginnings in the U.S. were humble, working as a janitor, it wasn’t long before Monetary Market member on the Chicago Mercantile exchange trading floor with in a variety of industries from telecommunication companies to consumer the future real estate mogul took his first step towards overwhelming success. Oppenheimer. During his entire career, Rich has maintained and pursued his goods manufacturers. He also worked in private equity evaluating merger and other passion as a professional comedian. acquisition targets. In 1993, Sean joined one of Chicago’s top real estate firms at the time, and within only a few short years, he had made a name for himself as one of the Rich Kasper is accredited as one of Chicago’s top producing agents with more Prior to joining McKinsey & Company, Mr. Burford worked for the General Electric most prolific sellers of residential real estate throughout not only Chicagoland than 19 years of experience in selling real estate and over $700 million in Company as a product manager, where he managed an $80 million global and the Midwest, but also the entire U.S with sales approaching $200 million sales to date. The grassroots of Rich’s real estate business is land acquisition product line launching over 60 new products in one year. He also served as a annually. and new construction from high-end single family residences in some of market development manager, responsible for developing new retail clients. Chicago’s most sought-after neighborhoods to selling multi-family buildings. Sean’s unique penchant for recognizing potential business connections and Rich Kasper’s approach far exceeds the daily real estate transaction, he is your Additionally, he spent seven years in the United States Air Force Special later nurturing them into a fruitful enterprise has been one of the cornerstones real estate advisor whom has tight knit relationships with each of his clients Operations Command as an officer in several special operations units flying MC- of his success in the industry, beginning with his founding of both Sussex who include developers, investors and home buyers, with whom he has built 130H aircraft in locations across the globe. & Reilly and Conlon & Co., a real estate merchant bank, in early 2000. The and maintained exceptional relationships, while exponentially building their real merchant bank calls on Conlon’s ability to connect dots and bring people estate portfolios. He has earned a reputation for his experience and wealth of Mr. Burford graduated with an M.B.A. from the University of Chicago’s Graduate together; and offers advisory services to high-net-worth families across the knowledge, and most importantly, the trust of his clients. School of Business. He earned his Bachelor of Arts degree in political science globe and co-investment opportunities. and Spanish from Purdue University as a distinguished graduate. Mr. Burford Amongst some of his most prestigious projects is his lead role in selling one is fluent in Spanish having studied at the Center for International Studies in As fast as his first brokerage, Sussex & Reilly “Sussex”, was formed, starting of Chicago’s largest development communities, The Homes of Riversedge. Madrid and I.E.S.E. in Barcelona. He is also proficient in French. as a modest 10-person operation, the firm just as quickly ballooned, expanding This development consisted of 76 condominium homes, 11 rowhomes and 6 into a 300-plus-employee business accounting for more than $1 billion in high-end single family homes along the river. A multi-family sale that has left an annual sales. Conlon sold Sussex, bought it back and then subsequently re-sold impression on the community is his unbelievable sale for one of his clients, who the company between 2006 and 2007. This allowed him to pursue other real is a property management company, in the sale of a six-unit Buena Park multi- estate and development ventures, chiefly among them, CONLON: A Real Estate family building for a sale price of $5.1 million. His most recent sale of a Lincoln Company “CONLON”. Park single-family home, located at 1643 North Burling, sold for $3.85 million. In 2009, Sean opened the doors to what would soon become one of Chicago’s His track record speaks for itself. Rich is established, respected and one most impressive brokerages, and he hasn’t looked back since. The firm, of Chicago’s most sophisticated realtors. He has many accomplishments in like many of Sean’s past endeavors, proved an almost immediate success, his career and in life, but none are more rewarding then the balance he has attracting buyers and sellers from the immediate area, as well as other parts of created in his work and personal life. Rich is married with two children with the U.S. and abroad. whom he spends quality time and enjoys many hobbies; in particular being an avid hockey player. The brokerage proved so successful, in fact, that in June 2013, Christie’s International Real Estate, one of the globe’s most exclusive real estate networks, aligned itself with CONLON to help bolster its business to the uppermost echelons of the international industry. Today, CONLON /Christie’s works in tandem to provide Chicagoland buyers and sellers with an unmatched level of service and expertise, with Sean at its head.16

MELISSA ARCHER-WIRTZ STEPHANIE POULAKIDAS COO VP OF SALES Melissa Archer-Wirtz leverages her extensive experience Stephanie began her career in real estate in late 2003 in marketing, business operations and executive after spending sixteen years in financial consulting with administration to help ensure CONLON/Christie’s perennial an international public accounting firm. Her exceptional standing as Chicagoland’s premier boutique real estate negotiation, advisory, relationship and client service skills brokerage. As Chief Operating Officer, she ideates creative when assisting both residential and investor real estate strategies that showcase the company’s unparalleled clients is a direct result of her extensive experience in expertise in helping buyers and sellers. Not only does quantifying economic damages for commercial litigation, she support the city’s most experienced agents to fulfill valuing closely held entities, including real estateclients’ real estate goals, but she also expertly and innovatively articulates their partnerships, and strategic consulting for corporate transactions.talent to do so. As a result, CONLON/Christie’s boasts a stellar reputation as abellwether in real estate in the U.S. and abroad. Stephanie represents buyers, sellers and investors of both residential and commercial real estate. As the buyer’s broker, she is conversant on buyer trendsWith degrees in political science and international development from the and preferences and quickly comprehends specific features and amenitiesUniversity of Iowa, Archer-Wirtz began her career with a large, new home sought by buyers in new construction and resale properties. As such, Stephaniedeveloper, where she strengthened her sales, marketing and human capital strives to create a seamless process by culling appropriate properties,management skills. Her exposure to market data and trend analysis while there explaining the financial impact of purchasing one property versus another andhelped hone her branding ability on which she continues to rely to uniquely monitoring the lending process. She has also exhibited an innate talent forposition the CONLON/Christie’s name. The transition to become Sean Conlon’s assisting clients in choosing properties in appreciating markets and achievingexecutive assistant permitted Archer-Wirtz the opportunity to work alongside the built-in equity as a result of prudent negotiating.inimitable entrepreneur for over three years prior to his launch of the renownedbrokerage. More than a decade later, her responsibilities have included not With the goals of creating reasonable expectations while achieving maximumonly oversight of all CONLON/Christie’s marketing, but also the recruitment, sale price as the seller’s broker, Stephanie assists with preparing the propertyengagement and retention of its agents. for maximum impact, including staging and minor repair and rehab suggestions, prior to becoming active on the market, and assesses market value andArcher-Wirtz’s deep knowledge of the city and its suburbs as well as her ardent market conditions for Sellers to target competitive pricing. She also positionsattention to industry research ensure that CONLON/Christie’s marketing is her listings using a winning combination of digital, print and social mediamethodical yet groundbreaking. Her imaginative campaigns have included advertising so that her properties stand out among the crowd.wrapping Chicago buses in famous artwork to highlight the brokerage’sconnection to the world’s leading art house, as well as prominent placement As an investor’s broker, Stephanie provides strategic comparable and sensitivityon city billboards, in Architectural Digest and The Wall Street Journal. Her analyses to best meet the investment objectives of the client, whether buying orunquestionable savvy for generating visibility for the brokerage and its products selling.has earned Archer-Wirtz recognition in Chicago Agent Magazine’s “Who’s Who inReal Estate” and Michigan Avenue Magazine’s “The List.” Stephanie’s comprehensive understanding of Chicago market trends and statistics, combined with her stellar brokerage skills, recently led to aIn addition to her professional pursuits, Archer-Wirtz possesses an enduring promotion to Vice President of Sales. In this position, Stephanie is responsiblecommitment to charitable causes. She was the first Peace Corps intern, where for implementing strategic initiatives for the development and growth of theshe supported the organization’s efforts to make a difference in the lives of business and CONLON’s 250+ agents, including coaching and mentoring herpeople in Africa, and has tutored autistic and inner city youth as a community colleagues in creating personalized business planning objectives to reachvolunteer. She has also wed her sense of civic responsibility with her CONLON/ individual sales goals.Christie’s role by directing the company’s annual charity golf tournament, whichhas more than doubled in the number of participants since its inception. A Stephanie received her MBA from DePaul University with a major in Finance andresident of Riverside with her husband and puppy, Archer-Wirtz credits CONLON/ a concentration in real estate finance and graduated from Indiana UniversityChristie’s achievements to the tenacity and hard work of its people even as she with a BS in Business and a major in Accounting. She passed the CPA exam inlooks forward to continuing to build upon the brokerage’s success with the best 1989. Throughout the years, Stephanie has served on many charitable boardsteam in real estate. and event committees. She was awarded the Rookie of the Year distinction in her first year in the real estate business and was recently recognized In Chicago Agent Magazine’s “Who’s Who in Chicagoland Real Estate.” Stephanie enjoys international travel and ferreting out the diverse delicacies of Chicago’s ethnic communities. Prior to her current residence in Ravenswood, Stephanie lived in Old Town for many years. 17

#1CHICAGO’S PREMIER AND CONLON/CHRISTIE’S INTERNATIONAL REAL ESTATE MOST GLOBALLY CONNECTED WHO WE ARE DEVELOPER SERVICES BOUTIQUE REAL ESTATE BROKERAGE In the spring of 2009, Sean Conlon, along with partners Benjie Burford, Rich We are a full service company — created out of the best of residential and Kasper, Tim Sheahan and Kieran Conlon, brought together a team of top commercial real estate professionals. The heart of our company is our people. $522K performing Chicago real estate agents to form the boutique brokerage, CONLON: CONLON/Christie’s is comprised of experienced industry professionals, from OUR AVERAGE HOME A Real Estate Company (CONLON). CONLON’s success during one of the worst Sean Conlon at the helm all the way to the administrative support staff. With an SALE PRICE. MORE THAN 5% economic times in decades was quickly noticed by both clients and peers. agent average of 10 years experience in real estate, our professionalism has HIGHER THAN SIMILAR, LOCALLY allowed us to introduce the Development Division at CONLON/Christie’s. CONLON has become Chicago’s premier boutique real estate brokerage by RECOGNIZED COMPETITORS focusing on their clients through a culture of professionalism and market CONLON/Christie’s knows the essential facets of successfully creating, leadership. Our broker team is comprised of nearly 250 hand-selected agents marketing and selling large and small real estate developments better than any 10+ with an average of over 10 years of experience. They have the marketing other Chicago brokerage. Utilizing our agents, in-house marketing personnel and and negotiating skills that produce the highest rates of success in arranging other design and marketing vendors, we follow three comprehensive phases of YEARS transactions for their clients. With six strategically placed offices in Chicago’s effective development sales: Consultation — the research and analysis phase AVERAGE YEARS OF Gold Coast, Lincoln Park, River North and Roscoe Village neighborhoods, as which is the bedrock for real estate marketing; Creativity — the demographic EXPERIENCE PER AGENT well as the North Shore and Western Suburbs, CONLON readily serves all of specific sales plan and branding phase which drives sales; and Accountability Chicago and beyond. As one of the top brokerage firms in Chicago, the CONLON — detailed tracking, analysis of leads and regular reporting which optimize the18 team never forgets that buying or selling a home is quintessentially one of the use of marketing dollars and efforts. most important life decisions both personally and financially. In 2012, CONLON, along with commercial real estate veteran Steve Horvath, launched CONLON CONSULTATION Commercial which focuses on servicing clients’ commercial real estate needs in development, industrial, office and retail leasing and sales. Each project begins with an in-depth analysis of variables pertaining to the development. This means research into the geographic location, demographics, We continue to be one of Chicago’s fastest growing brokerages through our economics and social environment of the project and surrounding area. Our recent, exclusive affiliation with Christie’s International Real Estate (CIRE) which research includes feasibility studies, analysis of competitors, absorption of brings an unprecedented global reach for a Chicago brokerage along with a similar product and pricing trends. unique ability to service Chicago’s luxury residential market. With this knowledge, we are able to deliver a strong understanding of how the Our experience and professionalism have allowed us to introduce CONLON/ development will fit into the market place, what the potential buyer demands Christie’s Development Division. With innovation, energy and a gimmick-free and also facilitate the strategic pricing of the product. Ultimately, we assist the approach, CONLON/Christie’s is able to serve Chicagoland’s developers more developer in assessing all aspects of the development including unit mix, finish successfully than anyone else. selection, amenities, floor planning and pricing. Real estate markets are constantly evolving with cycles, trends and highs and CREATIVITY lows. The current market is more competitive than ever before; no longer can you rely on the market to drive huge amounts of traffic and ever-increasing At this stage of the project, we have the necessary information to understand prices. Prospective buyers are more informed than before — they are more our target market and to begin development of a comprehensive marketing critical and armed with a deeper knowledge of the market and the product. plan. Our in-house marketing personnel is available, if necessary, to develop a Project marketing techniques that were successful in the past are not always specifically tailored plan which centers on branding the project or will work in effective in today’s market. conjunction with the developer’s marketing team. Creating an exceptional product is crucial in today’s market, however, it is only Our marketing team understands that branding a development is more than one aspect. Creating a vision to accompany the product and branded exposure creating just a logo; it is the collective impression of the project’s logo, to a target demographic is our expertise and will help get the product to sale. marketing strategy, website, advertising, collateral materials, signage, etc., that build the potential customer’s perception of the project. We will develop Selling the vision, creation and brand is essential, by appealing to the buyer a unique, branded campaign that sells more than just a building to the target emotionally, as well as rationally. We become partners with our clients and audience — it sells a lifestyle. through marketing collateral, interactive web-based marketing, strategic product releases and organized sales processes, we help all clients sell that vision, By approaching the sales process with a specific plan and a branded advertising their story and ultimately their product. campaign, CONLON/Christie’s places your development in a position to achieve maximum sales potential.

ACCOUNTABILITY This unique combination offers an incomparable level of service and global #1THE WORLD’S LEADING ART visibility under one of the world’s most superb brands.One of the key components of any real estate development sales project is BUSINESS WHICH ACHIEVEDaccountability; holding parties accountable is essential to success. Metrics and BLENDING ART AND REAL ESTATE GLOBAL ART SALES OF $7.4reporting are often haphazard and overlooked within the real estate industry. Christie’s clients who buy and sell works of art often request real estate BILLION IN 2015At CONLON/Christie’s, we use a unique system to provide reporting on lead services. By blending the auction house’s global perspective on art and lifestylemanagement, tracking and conversion. The ability for you, the client, to regularly with the local expertise of their Affiliates, Christie’s International Real Estate 45monitor a variety of aspects from sales staff performance, sales center traffic, brings exceptional service and knowledge to discerning buyers and sellers ofeffectiveness of the various parts of the e-campaign to direct mail response is luxury real estate. COUNTRIESan essential part of our system. This unique combination of worldwide expertise and regional connections NUMBER OF COUNTRIESUsing the facts and data, we can assess which parts of the campaign are has established Christie’s International Real Estate as the leading network of INCLUDED IN OUR NETWORKhaving the most success which means we, as a team, can nimbly and effectively brokers dedicated to the marketing and sale of luxury residential properties.modify the program on an ongoing basis. OF AFFILIATES. The natural overlay of fine art and luxury real estate was highlighted in theseConsultation Creativity Accountability recent sales: $118 BILLIONn Feasibility Studies n M arketing Plan n Sales Staffing and • The Blairsden Estate in Peapack, New Jersey was sold along with a collection n B randing Development Management of furniture, tapestries, old master paintings, silver, and porcelain from the AMOUNT IN TRANSACTIONSn P ricing Analysis & Trends estate. BY OUR AFFILIATE NETWORK n Search Engine Marketingn Competitive Analysis • The New York City apartments of Huguette Clark, were sold as well as jewelry IN 2015 n M essaging n Detailed Lead Tracking from her estate, including the iconic Clark Pink Diamond.n M arket Researchn F loor Plan and Finish n Exposure n D atabase and Web • Kaiuso, a historic garden estate outside Kyoto, Japan, listed at ¥8 billion, sold n E -marketing Tracking Management to an art auction attendee’s client. Selection Consulting n P erformance Comparisons • A Picasso painting owned by composer Andrew Lloyd Webber was sold at and Measurement Christie’s in London, and the composer’s Trump Tower duplex in New York was sold by Christie’s International Real Estate. n Media Buying & Placement THE SYNERGY BETWEEN CONLON: A REAL ESTATE COMPANY & n Print Collateral CHRISTIE’S INTERNATIONAL REAL ESTATECHRISTIE’S AUCTION HOUSE A commitment to the business philosophy established by Christie’s in 1766 defines the Christie’s International Real Estate approach — founded on trust,Christie’s Auction House was established by James Christie 250 years ago and integrity, discretion, and excellence.conducted the greatest auctions of the 18th, 19th, and 20th centuries. Today, it isthe world’s premier auction house and sets the standard for international art sales. Christie’s International Real Estate (CIRE) strengthens its reputation by the rigorous selection of local brokerages as its affiliates. As an authority in theChristie’s Auction House has 53 offices in 32 countries and 12 salerooms in cities high-end housing market, CIRE recognized CONLON: A Real Estate Company’saround the world including London, New York, Paris, Geneva, Milan, Amsterdam, substantial growth in luxury sales along with parallels in CONLON’s model to itsDubai, and Hong Kong. Christie’s offers more than 450 sales annually. own. Christie’s International Real Estate soon approached CONLON offering us to become its exclusive affiliate in Chicago.As the auction house of choice for influential art connoisseurs and collectors,Christie’s is anticipating the future by expanding into emerging markets. With an affiliate status, CONLON gains access to CIRE’s global marketing programs, worldwide network of other affiliates & agents in 45 countries, and theCHRISTIE’S INTERNATIONAL REAL ESTATE expertise of the Christie’s International Real Estate regional management teams.Christie’s International Real Estate brings the depth of expertise and excellence, Together, CONLON: A Real Estate Company and Christie’s International RealChristie’s defining characteristics, to create the world’s foremost international Estate bring Chicago’s most desired homes to the world’s most discerningreal estate company. property buyers.Building on centuries of experience in art, Christie’s International Real Estate workswith affiliated brokerages selected for their expertise in luxury real estate salesand its ability to meet strict standards of excellence. Making up its worldwidenetwork is more than 136 Affiliates and 32,000 agents across 45 countries. 19

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PREVIOUS DEVELOPMENT EXPERIENCE



EXPERIENCE 3823 NORTH ASHLAND 5068 NORTH WOLCOTT In a tough 2008 market, CONLON sold 26-unit condo conversion of Ravenswood 2301 WEST WOLFRAM 21 units of this 22-unit new construction vintage building. building in just eleven months. Total sellout approx: $6,250,000 Purchased along with the land for 15 Total sellout approx: $11,000,000 townhouses at 2823 N Oakley, CONLON 3024–28 NORTH SHEFFIELD presold 50% of the building before masonry 3203 NORTH OAKLEY 16-unit new construction building. was complete. All units were sold prior to Ten-unit new construction development, Total sellout: $8,750,000 completion, at some of the highest prices taken over from another brokerage that had seen since 2008 in that corner of Logan it listed for over a year with only two sales. 1502 NORTH SEDGWICK Square. We were actively involved in all After taking over the marketing, we sold Ten-unit new construction building. facets of the construction process, from the remaining eight units in nine months of Total sellout approx: $5,300,000assisting in the creation of a floor plan to selecting standard finishes, in order 2009.to help achieve the highest profit for the developer. Total sellout: $4,800,000 1740 WEST CORNELIATotal sellout approx: $2,000,000 3025 NORTH CALIFORNIA Seven-unit new construction building. 14 new construction units. CONLON took CONLON sold 60% of the building within 2823 NORTH OAKLEY over marketing and sales from another three months. large firm after they sold only seven units 15 new construction townhomes by in two years. CONLON sold four units in five Total sellout approx: $3,500,000 CONLON client. CONLON advised months of 2009. throughout the land purchase from the Total sellout: $3,800,000 1851 NORTH HALSTED bank, producing a pro-forma that allowed the developer to proceed with confidence. 4616 NORTH KENMORE Five-unit new construction building. Since Sales went smoothly with a number of units 21 new construction units. The CONLON 2014, CONLON has advised the developer pre-sold, and prices steadily increased team helped with the design of the building, on the land purchase, worked with the throughout the construction process. The floor plans and with staging to better suit neighborhood community for buildingfinal unit sold only weeks after construction of the project was completed, in the area buyers’ needs. approval and spent months advising theJuly of 2015. The builder achieved some of the highest prices seen in that Total sellout approx: $6,500,000 design team. These units are currentlyneighborhood since before 2009. on the market with expected delivery in 737-747 WEST CORNELIA December 2016.Total sellout: $8,500,000 38-unit courtyard building conversion. Total sellout: $9,000,000 Estimated sellout approx: $10,000,000 HOMES OF RIVERS EDGE: 2801 NORTH OAKLEY Our agents worked with the developer on sourcing and acquiring the land, and performing feasibility studies. We also helped with the floor plan design, finish selection and unit mix for 76 new construction condos, 11 rowhomes and six single family homes. Our team sold$25,000,000 of the project and out sold the market in 2008 and 2009.Total sellout approx: $41,500,000 6030 NORTH SHERIDAN Our agents managed and sold the entire condo conversion project. The team coordinated the marketing plan, marketing budget, sales center, and all sales aspects of this 262-unit, Edgewater high-rise. Total sellout approx: $42,000,000 23

PROFESSIONAL. EXPERIENCED. ANALYTICAL. Three words that describe our Back-to-Basics approach to handling and selling multi-unit residential properties. Don’t be fooled — our Back-to-Basics strategy is far from simplistic.Instead, it is the core foundation of hard work and hands-on experience upon which we build intricate, custom plans to sell each property. Our team welcomes the opportunity to partner with you in an advisory, marketing and brokerage role for a successful sellout of this exciting development.